Corporation Tax Act, 1976
Double taxation relief: supplementary. |
23.—(1) The provisions applied to corporation tax in respect of income by section 22 shall apply also to corporation tax in respect of chargeable gains, and for that purpose— | |
(a) references in those provisions to income shall be construed as references to chargeable gains; and | ||
(b) references in those provisions to taxes of a similar character, or corresponding, to corporation tax shall be construed as references to taxes on chargeable gains; | ||
and section 361 (7) (8) of the Income Tax Act, 1967 , shall have effect accordingly. | ||
(2) For the purposes of paragraph 4 of Schedule 10 to the Income Tax Act, 1967 (which, as applied to corporation tax by section 22, limits the credit for foreign tax allowable against corporation tax in respect of any income to the corporation tax attributable to that income and, by virtue of subsection (1), applies similarly in relation to chargeable gains), the corporation tax attributable to any income or gain (“the relevant income or gain”) shall be determined in accordance with subsections (3) and (4). | ||
(3) Subject to subsection (4), the amount of corporation tax attributable to the relevant income or gain shall be treated as equal to such proportion of the amount of that income or gain as corresponds to the rate of corporation tax payable by the company (before any credit for double taxation relief) on its income or chargeable gains for the accounting period in which the income arises or the gain accrues (“the relevant accounting period”). | ||
(4) Where in the relevant accounting period there is any deduction to be made for charges on income, expenses of management or other amounts which can be deducted from or set off against or treated as reducing profits of more than one description— | ||
(a) the company may for the purposes of this section allocate the deduction in such amounts and to such of its profits for that period as it thinks fit; and | ||
(b) the amount of the relevant income or gain shall be treated for the purposes of subsection (3) as reduced or, as the case may be, extinguished by so much (if any) of the deduction as is allocated to it. |